Online checking accounts offer 24/7 accessibility and often lower costs and better interest rates than many traditional checking accounts. We’ve analyzed over 40 options to bring you the best online checking accounts with competitive rates, rewards and perks.
Best Online Checking Accounts in 2024: Our Picks
Below are our top picks for the best online checking accounts, many of which also make our list of the best free checking accounts and our overall list of the best checking accounts. Our research team reviewed checking accounts from more than 40 reputable online financial institutions, giving the highest scores to accounts that have no minimum opening deposit or monthly maintenance fee. These accounts also often provide perks such as cash back on debit purchases.
All providers on this list are insured by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA), which protects balances up to $250,000 per depositor, per bank. We’ll cover each account’s main features, pros, cons and account requirements.
After researching 114 banks and credit unions we at the MarketWatch Guides team rated these 6 as our picks for the best checking accounts.
- Discover Bank – APY not offered
- Varo Bank – APY not offered
- SoFi – APY: 0.50%
- Ally Bank – APY: 0.10% or 0.15%
- Alliant Credit Union – APY: 0.25%
- LendingClub – APY: 0.10% or 0.15%
Discover Cashback Debit Account
Best for Large ATM Network
Varo Bank Account
Best for Mobile App Experience
SoFi Checking and Savings Account
Best for Cash-Back Incentives
Why We Like SoFi’s Online Checking Account: With SoFi Bank, opening a checking account automatically gets you a savings account at the same time. Unlike with many checking accounts, you’ll earn interest regardless of your balance. You can also get up to 15% cash back on debit card purchases made at eligible local businesses.
SoFi’s online checking account doesn’t come with a monthly service fee or other common charges, and it doesn’t have minimum deposit or minimum balance requirements. You can access more than 55,000 fee-free Allpoint ATMs. The bank offers free paper checks and lets you send free peer-to-peer payments.
SoFi also offers direct deposit up to two days early. Plus, if you set up a monthly direct deposit of $1,000 or more, you could qualify for up to $50 in free overdraft coverage for debit card purchases.
Our Experience Opening a SoFi Account
We opened a combination checking and savings account with SoFi to research the full customer experience. Opening the account, including navigating security features and entering verification codes, took about five minutes.
We really liked the following features of our SoFi account:
- Instant transfers between checking and savings
- Free VantageScore credit score
- Awards points toward cash-back rewards for common banking activities, such as setting up bill pay
SoFi could improve the following aspects of its customer experience:
- Cluttered dashboard that makes it difficult to see your banking information on the first screen
- Takes up to five business days for the initial transfer to be processed and the full amount to be available
Source: Sofi.com via MarketWatch Guides user testing
Welcome Bonuses
New SoFi members can earn a welcome bonus of up to $300 when they open a SoFi Checking and Savings account and set up eligible direct deposits during the 25-day bonus period. Existing SoFi customers are also eligible if they’ve never enrolled in direct deposit with the bank.
- Earn a $50 cash bonus with qualifying direct deposits of $1,000 to $4,999.99.
- Earn a $300 cash bonus with qualifying direct deposits of $5,000 or more.
This offer expires on June 30, 2024.
Additionally, Rakuten is offering up to $125 cash back if you open a new SoFi Checking and Savings account and complete a direct deposit of $500 or more within 45 days. The promotion expires on Dec. 31, 2024.
Pros & Cons
Ally Bank Spending Account
Best for Customer Experience
Alliant Credit Union High-Rate Checking Account
Best Online Credit Union Option
Why we like Alliant’s online checking account: Alliant Credit Union’s online High-Rate Checking accounts has great perks and lenient membership requirements, making it one of our top picks. It pays more than three times the national average rate for interest-bearing checking accounts if you receive one or more qualifying electronic deposits each month and agree to receive e-statements.
Alliant account holders can use more than 80,000 fee-free ATMs, some of which accept cash deposits. The credit union also reimburses up to $20 per month for out-of-network ATM fees. There are no monthly service, overdraft or minimum balance fees, and you can set up free overdraft protection for your online checking account by linking it to your Alliant savings account. Another perk is that you get one free box of paper checks when you open an account.
Our Experience Opening an Alliant Credit Union Account
We opened a certificate of deposit (CD) account with Alliant Credit Union to get in-depth information about the customer experience. The application process was seamless, and we appreciated security features such as two-factor authentication. We also liked these parts of being an Alliant account holder:
- Phone call was answered live by a customer service rep
- User-friendly and visually appealing dashboard
- Transferred the initial deposit instantly, while other banks we opened accounts with took a few days to do this
But we encountered issues with Alliant’s chat bot. It was hard to find the chat tool on the credit union’s website, and once we did, it couldn’t understand our question about CD renewal.
Source: Alliant.com via MarketWatch Guides user testing
Pros & Cons
LendingClub Rewards Checking Account
Best for No Fees
The Best Online Checking Accounts of August 2024
|
What Stands Out
One of the highest checking APYs available and a sign-on bonus with direct deposit
APY*
0.50%
Cash Back**
Up to 15%
|
|
What Stands Out
Up to $30 cash back per month on debit card purchases
APY*
N/A
Cash Back**
1%
|
|
What Stands Out
Up to $50 cash back per month on select brands with debit card purchases
APY*
N/A
Cash Back**
Up to 6%
|
|
What Stands Out
Spending buckets feature to help you budget and plan
APY*
Up to 0.25%
Cash Back**
N/A
|
|
What Stands Out
0.25% APY for standard and teen checking accounts with e-statements and qualifying monthly deposits
APY*
0.25%
Cash Back**
N/A
|
*APYs (Annual Percentage Yields) accurate as of July 17, 2024
** Cash back rates may vary based on provider terms and limits.
What To Look for in an Online Checking Account
Since banks and credit unions with online checking accounts don’t have the same overhead costs as their brick-and-mortar counterparts, some offer better perks and higher interest rates. Here’s what to look for to get the most out of your online account.
Online checking accounts offer a lot of convenience, but some features work differently than traditional brick-and-mortar banks. Before you choose one, make sure you review things like ATM access or other services that you intend to use.
Lower Fees
With an online bank, you usually won’t have to maintain a minimum balance to avoid paying a monthly maintenance fee as you might with a traditional bank. The best online banks also don’t charge overdraft fees or insufficient funds fees.
Since online banks tend to have large ATM networks, they also tend to have lower ATM fees. If you need to use an out-of-network ATM, some online financial institutions will reimburse you for some or all of those charges.
Higher Interest Rates
Traditional checking accounts don’t typically earn interest. If they do, the rate is often very low — the national average was 0.07% as of March 18. However, online banks and credit unions tend to offer higher interest rates for various types of accounts. In our consumer banking survey, about 55% of respondents said they would switch to an online bank for a better interest rate.
Mobile Apps
Mobile banking access is essential for many checking customers — 36% of our survey respondents consider a good mobile app or online banking experience one of the most important things about choosing a checking account. The best mobile banking apps allow you to transfer money (often via Zelle), deposit checks, find ATMs and make digital payments.
Some online financial institutions let you link outside accounts so you have a better idea of your finances. Some mobile banking apps also let you set up spending alerts and automated transfers.
Check Writing
If you still use paper checks (like 51% of our consumer banking survey respondents) choose an online checking account that has check-writing capabilities. Some accounts provide free checks.
Cash Deposits
Cash deposits with online checking accounts work differently than with brick-and-mortar banks. Some online banks and credit unions allow you to make cash deposits at select ATMs in their networks. With others, you’ll need to use a service such as Green Dot, which lets you deposit cash in your checking account at retailers such as CVS and Walmart. While some banks don’t charge fees for Green Dot deposits, others allow retailers to charge up to $4.95.
Early Direct Deposit
Many online checking accounts offer early direct deposit, a service that releases your direct deposits up to two days earlier than you’re scheduled to receive the money. If you want to access your paycheck early, choose an online checking account that offers this feature.
24/7 Accessibility
While there’s no in-person support, an online checking account can offer a lot of convenience and flexibility. You won’t have to worry about banking hours that don’t fit your schedule. You can usually make secure online transfers, use your debit card and visit ATMs at any time. Plus, online banks tend to offer 24/7 customer service options.
>> Related: Learn more about the best online banks
Consumer Insights: Our Checking Account Survey
In our consumer banking survey, we found that online financial institutions often provide the checking account features consumers care about the most. The most important feature for people selecting a checking account was low or no monthly fees (74% of respondents). Second was access to free ATMs (58%), and third was low or no overdraft fees (45%). Online checking accounts fit the bill on all three fronts.
Mobile and Online Banking vs. In-Person Banking
Roughly 75% of the people we surveyed prefer to bank via an online platform or a mobile app instead of visiting a bank branch. Here’s what a few of the people we surveyed had to say:
- “My bank makes online banking seamless and easy,” one respondent said.
- Another commented that “online services are just more convenient.”
- “I love how easy and convenient online banking is overall, not to mention the transactions seem to go through so much faster,” another person said.
The benefits of online banking that consumers in our survey mentioned included functionality, 24/7 access and not having to wait in line or rush to a branch. “My financial institution's digital platform's ease of use is more like playing a game,” one person explained. “I find it to be that easy.”
Generational Differences
According to our survey, younger generations are less likely to prefer in-person banking. Gen X is the generation least likely to bank in person, with roughly 81% preferring to bank online or with an app. Baby Boomers are the most likely to prefer in-person banking, but about 63% of them would rather access their accounts online or through an app.
Mobile App Performance
Our survey found that mobile apps are also important considerations for consumers who are looking for checking accounts. Overall, 41% of respondents prefer to bank via mobile app, and over 36% say a good mobile app is a top consideration when selecting a checking account. Roughly 44% of the people we surveyed use a mobile banking app daily.
Many customers said a bank’s mobile app would be a make-or-break feature, especially for depositing checks and transferring money. Some customers complained that their bank’s app was difficult to use and needed to be updated for increased speed. Others commented on how much they love their bank’s app.
“My financial institution has updated their mobile app and it is a way better experience for users,” one respondent said.
Recap of Our Picks for the Best Online Checking Accounts
- SoFi Bank Review: Best for Cash-Back Incentives
- Discover Bank: Best for Large ATM Network
- Varo Bank: Best for Mobile App Experience
- Ally Bank Review: Best for Customer Experience
- Alliant Credit Union Review: Best Online Credit Union Option
- LendingClub: Best for No Fees
FAQ: Online Checking Accounts
Based on our reviews, SoFi offers the best online checking account because it offers a sign-on bonus, a combined checking and savings account with competitive rates on all balances and up to 15% cash back on debit card purchases. However, the best option for you will depend on the banking services and features you need.
Yes, online checking accounts are safe when financial institutions take measures to prevent security breaches and you follow best practices for digital banking. Your money is also safe from a bank failure when you use an institution with insurance from the NCUA (for credit unions) or FDIC (for banks) insurance.
If your online account supports it, you can usually use your debit card to deposit cash at an ATM that accepts deposits. Some online accounts require you to visit a participating retailer instead. Note that you may have to pay a fee for each cash deposit.
Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
To find the best online checking accounts, our team reviewed checking account products from 40 reputable online financial institutions. The banks and credit unions that received the top ratings for checking accounts tend to have no minimum opening deposit, monthly maintenance fee and no or low overdraft fees, making them accessible to more customers. They often provide perks such as ATM reimbursements and cash back on debit card purchases.
- Savings and money market accounts (35% of total score): The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
- Checking accounts (30% of total score): High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
- Certificates of deposit (20% of total score): Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
- Banking experience and access (15% of total score): Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
*Data accurate at time of publication
**Rates and promotions accurate as of July 17, 2024
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.
